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OIL AND GAS
Texas ruling on oil boost of confidence, Kurds say
by Daniel J. Graeber
Erbil, Iraq (UPI) Aug 27, 2014


Iran says some possible oil customers are broke
Tehran (UPI) Aug 28, 2014 - Countries willing to buy oil from Iran usually don't have enough money in their federal energy coffers to buy it, the Iranian oil minister said.

Iran can sell about 1 million barrels of oil per day on the international market under the terms of an agreement reached with Western powers in exchange for a commitment to curb nuclear research activity.

Iranian Oil Minister Bijan Zanganeh said a five-member group vetting future oil contracts is "precise" when determining export destinations.

"Many countries are willing to buy Iran's oil, but when studies are made, we find out that there is not even $1 million in their accounts, not to mention enough money to pay for an oil cargo," he said Wednesday.

Zanganeh said the country aims to more than double its crude oil production from 2.5 million barrels per day to 5.7 million bpd within the next three years. Oil sales for the first four months of the year were up 5 percent when compared with last year, the government said.

Iranian exports in 2011 were listed at around 2.2 million bpd.

A Texas court ruling to dismiss an order to seize Kurdish oil parked off the U.S. coast should give potential buyers confidence, the Kurdish government said.

A Texas judge had ordered U.S. Marshals to seize Kurdish oil loaded onto the United Kalavrvta tanker, parked off the coast of Galveston, Texas, in international waters. The semiautonomous Kurdish government and the federal government in Baghdad filed competing claims in Texas, though the court eventually sided with the Kurdish claims that its oil could reach U.S. ports.

"The ruling of the Texas court should give confidence to buyers of Kurdistan crude oil in the United States and elsewhere," Kurdish Minister of Natural Resources Ashti Hawrami said in a statement Tuesday.

The minister said all Kurdish crude oil exports and sales are legal according to the terms spelled out in the Iraqi constitution, a claim countered by Baghdad.

The U.S. government in the past has sided with the Iraqi government, which says it has the sole authority over exports. Speaking to reporters Tuesday, U.S. State Department spokeswoman Jen Psaki said the issue was a commercial matter.

"The United States government is not involved," she said.

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